Depends on what and how bitcoin is going to be regulated. If it brings some strict regulations and imposes policies that favors only the government, then it won't be beneficial to the community. Instead, it will end up being a centralized currency. There will be no difference between other digital currency and bitcoin. Now we don't what that, do we?
Yeah it depends on some aspects such as what rules the government makes, when there are limitations in usage, maybe it will be detrimental to investors and users. but for required data verification, some users may still approve it, as long as bitcoin is legalized and many merchants will accept it, so that bitcoin is easy to use, its not a problem